View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Nov. 30, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	National Vision Holdings, Inc.
Entity Central Index Key	0001710155
Current Fiscal Year End Date	--12-30
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		74,653,832

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 27,621	$ 4,945
Accounts receivable, net of allowances	39,111	34,370
Inventories	89,370	87,064
Prepaid expenses and other current assets	22,688	20,880
Total current assets	178,790	147,259
Property and equipment, net	290,656	256,414
Other assets and deferred costs:
Goodwill	792,744	793,229
Other assets	11,114	12,330
Total non-current assets	1,410,072	1,383,858
Total assets	1,588,862	1,531,117
Current liabilities:
Accounts payable	33,562	39,400
Other payables and accrued expenses	90,746	69,402
Unearned revenue	20,867	25,600
Deferred revenue	64,356	57,996
Current maturities of long-term debt	9,645	7,285
Total current liabilities	219,176	199,683
Long-term debt, less current portion and debt discount	912,734	738,340
Other non-current liabilities:
Deferred revenue	32,094	29,432
Other liabilities	49,714	50,497
Deferred income taxes, net	120,556	111,278
Total other non-current liabilities	202,364	191,207
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 56,477 and 56,202 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively.	565	562
Additional paid-in capital	259,034	424,789
Accumulated other comprehensive loss	(13,223)	(14,556)
Retained earnings (deficit)	8,445	(8,675)
Treasury stock, at cost; 28 shares as of September 30, 2017 and December 31, 2016	(233)	(233)
Total stockholders’ equity	254,588	401,887
Total liabilities and stockholders’ equity	1,588,862	1,531,117
Trademarks and trade names
Other assets and deferred costs:
Intangible assets	240,547	240,547
Other intangible assets, net
Other assets and deferred costs:
Intangible assets	$ 75,011	$ 81,338

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares, issued	56,477,000	56,202,000
Common stock, shares, outstanding	56,477,000	56,202,000
Treasury stock, shares	28,000	28,000

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Revenue:
Net product sales	$ 283,648	$ 246,638	$ 867,192	$ 756,787
Net sales of services and plans	62,441	54,578	186,297	162,294
Total net revenue	346,089	301,216	1,053,489	919,081
Costs applicable to revenue (exclusive of depreciation and amortization):
Products	115,752	99,096	349,099	299,420
Services and plans	46,606	39,568	135,474	115,033
Total costs applicable to revenue	162,358	138,664	484,573	414,453
Operating expenses:
Selling, general and administrative expenses	151,251	134,457	445,714	395,385
Depreciation and amortization	15,352	13,217	44,404	38,237
Asset impairment	0	0	1,000	52
Litigation settlement	0	0	7,000	0
Other expense, net	568	563	744	1,217
Total operating expenses	167,171	148,237	498,862	434,891
Income from operations	16,560	14,315	70,054	69,737
Interest expense, net	14,851	9,728	40,965	29,377
Debt issuance costs	0	0	2,702	0
Earnings before income taxes	1,709	4,587	26,387	40,360
Income tax provision	163	1,561	9,267	15,893
Net income	$ 1,546	$ 3,026	$ 17,120	$ 24,467
Earnings per share:
Basic (in usd per share)	$ 0.03	$ 0.05	$ 0.30	$ 0.44
Diluted (in usd per share)	$ 0.03	$ 0.05	$ 0.29	$ 0.43
Weighted average shares outstanding:
Basic (shares)	56,414	56,211	56,363	56,176
Diluted (shares)	58,459	57,170	58,281	56,814
Comprehensive income:
Net income	$ 1,546	$ 3,026	$ 17,120	$ 24,467
Change in fair value of hedge instruments	2,255	(663)	2,176	(13,245)
Tax (provision) benefit of change in fair value of hedge instruments	(872)	261	(843)	5,219
Comprehensive income	$ 2,929	$ 2,624	$ 18,453	$ 16,441

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Cash flows from operating activities:
Net income	$ 17,120	$ 24,467
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation of property and equipment	38,077	31,345
Amortization of intangible assets	6,327	6,892
Amortization of loan costs	3,075	2,946
Asset impairment	1,000	52
Deferred income tax expense	8,922	15,901
Non-cash stock option compensation	3,140	3,308
Non-cash inventory adjustments	4,695	1,228
Debt issuance costs	2,702	0
Other	388	529
Changes in operating assets and liabilities:
Accounts receivable, net	(4,741)	569
Inventories	(7,001)	(8,007)
Other assets	2,487	(1,223)
Accounts payable	(5,838)	(8,738)
Other liabilities	25,898	21,807
Net cash provided by operating activities	96,251	91,076
Cash flows from investing activities:
Purchase of property and equipment	(67,135)	(66,771)
Purchase of investments	(1,500)	(1,000)
Other	(113)	(734)
Net cash used for investing activities	(68,748)	(68,505)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	173,712	0
Proceeds from issuance of common stock	1,004	0
Principal payments on long-term debt	(6,236)	(4,886)
Proceeds from exercise of stock options	1,088	884
Payments on capital lease obligations	(710)	(426)
Debt issuance costs	(2,702)	0
Dividend to stockholders	(170,983)	0
Net cash used for financing activities	(4,827)	(4,428)
Net change in cash and cash equivalents	22,676	18,143
Cash and cash equivalents, beginning of year	4,945	5,595
Cash and cash equivalents, end of period	27,621	23,738
Non-cash financing activities:
Deferred offering costs accrued at the end of period	$ 2,694	$ 0

Description of Business and Basis of Presentation	9 Months Ended
Description of Business and Basis of Presentation	Sep. 30, 2017
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Nature of Operations National Vision Holdings, Inc. ( “NVHI,” the “Company,” “we,” “our,” or “us”) is a holding company whose operating subsidiaries include its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and NVI’s direct wholly owned subsidiaries. The Company is a leading value retailer of eyeglasses and value retailer of contact lenses. To support our operations, we also own and operate three optical laboratories and two distribution centers. We operated 996 and 943 retail optical locations in the United States and its territories as of September 30, 2017 and December 31, 2016, respectively, through our five store brands, America’s Best Contacts and Eyeglasses (“America’s Best”), Eyeglass World, Vista Optical locations on U.S. Army/Air Force military bases and within Fred Meyer stores, and our management & services arrangement with Walmart. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and, therefore, do not include all information and footnotes required by U.S. GAAP for complete consolidated financial statements. The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited consolidated balance sheet for the fiscal year then ended. These unaudited interim condensed consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s consolidated financial position as of September 30, 2017, the consolidated results of operations for the three and nine months ended September 30, 2017 and October 1, 2016, and consolidated cash flows for the nine months ended September 30, 2017 and October 1, 2016. Certain information and footnote disclosures normally included in our annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted; however, we believe that the disclosures included herein are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2016 included in the Company’s final prospectus dated October 25, 2017 (the “Prospectus”), as filed with the Securities and Exchange Commission (the “SEC”) on October 27, 2017 pursuant to Rule 424(b)(4) under the Securities Act Securities Act of 1933, as amended (the “Securities Act”). The significant accounting policies followed by the Company are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes in our significant accounting policies during the nine months ended September 30, 2017, except for the adoption of Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting and ASU No. 2017-04, Intangibles - Goodwill and Other, neither of which had a material effect on the Company’s consolidated financial condition, results of operations, or cash flows. The condensed consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2017 contains 52 weeks and will end on December 30, 2017. All three and nine month periods presented herein contain 13 and 39 weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods. Seasonality The consolidated results of operations for the three and nine months ended September 30, 2017 and October 1, 2016 are not necessarily indicative of the results to be expected for the full fiscal year due to seasonality and uncertainty of general economic conditions that may impact our key end markets. Historically, our business has realized a higher portion of net revenue, income from operations, and cash flows from operations in the first fiscal quarter, and a lower portion of net revenue, income from operations, and cash flows from operations in the fourth fiscal quarter. The seasonally larger first quarter is attributable primarily to the timing of our customers’ personal income tax refunds and annual health insurance program start or reset periods. Seasonality related to fourth quarter holiday spending by retail customers does not significantly impact our business. Our quarterly consolidated results can also be affected by the timing of new store openings and store closings and the timing of certain holidays. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Initial Public Offering On October 30, 2017, we completed an initial public offering of our common stock (“IPO”) in which we issued and sold 18,170,000 shares of common stock, including 2,370,000 shares of common stock pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The shares sold in the offering were registered under the Securities Act pursuant to our Registration Statement on Form S-1 (File No. 333-220719), which was declared effective by the SEC on October 25, 2017. The shares of our common stock were sold at an initial offering price of $22.00 per share, which generated net proceeds of approximately $375.8 million to the Company, after deducting underwriting discounts and commissions of approximately $24.0 million which included $0.7 million paid to KKR Capital Markets LLC. (“KCM”), an affiliate of KKR, for underwriting services in connection with the IPO. We primarily used the net proceeds from the IPO to repay all $125.0 million outstanding aggregate amount of the Company’s second lien term loans and approximately $235.0 million of the outstanding amount of the Company’s first lien term loans and accrued and unpaid interest thereon. The repayment will result in an extinguishment of debt in the amount of approximately $353.3 million, which will be recognized in the fourth quarter of 2017. During the fourth quarter of 2017, the Company expects to pay $4.0 million of transaction related expenses. The remaining $11.8 million of the proceeds will be used for general corporate purposes, including the termination fees described below. NVI was party to a Monitoring Agreement, dated as of March 13, 2014 (the “Monitoring Agreement”), with KKR and Berkshire, which was terminated automatically in accordance with its terms upon the completion of the IPO. In connection with such termination, the Company paid termination fees of approximately $3.6 million and $0.8 million to KKR and Berkshire, respectively. Affiliates of KKR and Berkshire retained 58.2% and 13.6% ownership interest, respectively, in the Company after the IPO. Stock Split In connection with preparing for the IPO, on October 12, 2017 the Company’s Board of Directors approved a 1.96627-for-one reverse stock split of the Company’s common stock. The reverse stock split became effective October 24, 2017. The par value per share of common stock and authorized shares of common stock remain unchanged at $0.01 per share and 200 million shares, respectively. The accompanying financial statements and notes thereto give retroactive effect to the reverse stock split for all periods presented. All common share and per share amounts in the financial statements and notes have been retrospectively adjusted to give effect to the reverse stock split, including reclassifying an amount equal to the reduction in aggregate par value of ‘‘Common stock’’ to ‘‘additional paid-in capital’’ on the condensed consolidated balance sheets. Deferred Offering Costs We capitalize legal and accounting fees directly relating to the IPO. These deferred offering costs will be offset against offering proceeds during the fourth fiscal quarter of 2017. As of September 30, 2017, the Company capitalized $3.2 million of deferred offering costs in prepaid expenses and other current assets in its condensed consolidated balance sheet, and accrued $2.7 million of such costs during the nine months ended September 30, 2017, which are presented in the condensed consolidated statement of cash flows as non-cash financing activities for the nine months ended September 30, 2017. We estimate an additional $1.6 million of direct IPO related costs to be capitalized in the fourth quarter of 2017. We also estimate to record an increase in additional paid-in-capital of $371.0 million as a result of the IPO. Income Taxes Our effective income tax rate, or ETR, was 9.5% and 34.1% during three moths ended and 35.2% and 39.4% during the nine months ended September 30, 2017 and October 1, 2016, respectively. The 9.5% rate during the three months ended September 30, 2017 resulted from a change to our expected annual ETR, with the cumulative results of that change recorded in the current quarter. During the nine months ended September 30, 2017, our expected combined statutory federal and state rate was reduced by a $1.4 million income tax benefit (5.3%) resulting from the recapitalization dividend described in Note 5 - Related Party Transactions. Other items aggregated to a 0.5% further reduction in the rate for the period. These benefits were partially offset by an increase in tax expense of $0.4 million (1.5%) related to a valuation allowance recorded on an impairment-related deferred tax asset. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. ASU No. 2014-09 provides new guidance related to the core principle that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. During 2016, the FASB issued additional ASUs to clarify certain aspects of ASU No. 2014-09, including ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) in March 2016, and ASU No. 2016-10, Identifying Performance Obligations and Licensing in April 2016. The guidance is effective for fiscal years beginning after December 15, 2017, and interim reporting periods within that fiscal year. The Company will adopt this new guidance in the first quarter of 2018 using the modified retrospective method. The most significant components of the new guidance to the Company relate to performance obligations surrounding our bundled product and service offerings and the reporting of revenue on a gross versus net basis with respect to our management and services agreement with Walmart, and the timing of revenue recognition associated with our discount club membership fees. We are currently finalizing our assessment, but we do not expect the adoption of this new guidance to have a significant impact on the timing or amount of revenue recognized in our consolidated financial results based on our implementation progress to-date. We do expect incremental additional disclosures in the notes to our consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases. The new guidance establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either financing or operating, with such classification affecting the pattern of expense recognition in the statement of operations. The guidance is effective for fiscal years beginning after December 15, 2018, and interim reporting periods within that fiscal year. A modified transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company will adopt this new guidance in the first quarter of 2019. We are evaluating the impact of implementation of this new guidance on our consolidated financial statements, but expect that adoption will have a material impact to the Company’s total assets and liabilities since we have a significant number of operating leases not currently recognized on our consolidated balance sheets. In April 2016, FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. This new guidance simplifies the accounting for share-based payment transactions, including income tax consequences, classification of certain items on the statement of cash flows, forfeitures, and minimum statutory withholding requirements. This new guidance is effective for fiscal years beginning after December 15, 2016, and interim reporting periods within that fiscal year. We adopted this new guidance in the first quarter of 2017. The adoption of this new guidance did not have a material effect on the Company’s financial condition, results of operations, or cash flows. In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other. This new guidance removes Step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance will be applied prospectively, and is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We adopted this new guidance during the first quarter of 2017. The adoption of this new guidance did not have a material effect on the Company’s financial condition, results of operations, or cash flows. Correction of an Error During the first quarter of 2017, we identified an error in our previously issued 2016 consolidated financial statements related to contact lens inventories that were expired or expiring and could not be sold as of December 31, 2016. Fiscal year 2016 costs applicable to revenue (products) was understated by $2.1 million, and net income was overstated by $1.3 million. We corrected the error in the three months ended July 1, 2017. Management concluded that the error was not material to the 2016 consolidated financial statements or the estimated 2017 results of operations. Cost Method Investment The Company has a $1.0 million cost method investment in a private start-up company whose principal business is creating eyeglasses through three dimensional printing which can be customized based on a scan of the customer’s face. During the second quarter of 2017, management determined that it was unlikely that the business would be able to continue operations for the foreseeable future. Therefore, we recorded an impairment charge for the entire amount of the investment during the second quarter of 2017, which is reflected in the condensed consolidated statement of operations and other comprehensive income for the nine months ended September 30, 2017.

Details of Certain Balance Sheet Accounts

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Details of Certain Balance Sheet Accounts



In thousands	As of September 30, 2017			As of December 31, 2016
Accounts receivable, net:
Trade receivables	$	25,985		$	20,817
Credit card receivables	7,534			9,398
Tenant improvement allowances receivable	5,132			3,308
Other receivables	2,613			2,430
Allowance for uncollectible accounts	(2,153		)	(1,583		)
	$	39,111		$	34,370

Inventories:
Raw materials and work in process ⁽¹⁾	$	41,985		$	42,266
Finished goods	47,385			44,798
	$	89,370		$	87,064
(1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, the Company does not separately present raw materials and work in process.

Property and equipment, net:
Land and building	$	3,608		$	3,607
Equipment	193,945			161,714
Furniture and fixtures	41,228			36,046
Leasehold improvements	145,661			121,963
Construction in progress	32,732			28,099
Property under capital leases	9,262			3,244
	426,436			354,673
Less accumulated depreciation	135,780			98,259
	$	290,656		$	256,414

2. Details of Certain Balance Sheet Accounts (continued)



In thousands	As of September 30, 2017		As of December 31, 2016
Other payables and accrued expenses:
Employee compensation and benefits	$	29,238	$	18,984
Advertising	1,588		1,058
Self-insurance reserves	6,773		7,235
Reserves for customer returns and remakes	7,075		4,611
Capital expenditures	8,424		9,202
Legacy management and services agreement	5,306		4,591
Rental expenses	1,514		2,172
Fair value of derivative liabilities	8,499		8,218
Professional fees	2,938		1,298
Supplies and other store support expenses	3,033		3,489
Litigation settlements	7,469		422
Other	8,889		8,122
	$	90,746	$	69,402

Other non-current liabilities:
Fair value of derivative liabilities	$	13,061	$	15,518
Tenant improvements ⁽²⁾	22,831		21,089
Deferred rental expenses	7,169		6,256
Self-insurance reserves	4,147		3,908
Above market leases	952		1,705
Other	1,554		2,021
	$	49,714	$	50,497
(2) Obligations for tenant improvements are amortized as a reduction of rental expense over the respective lease term.

Fair Value Measurements of Financial Assets and Liabilities

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements of Financial Assets and Liabilities

The Company uses a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect pricing based upon a reporting entity’s own market assumptions.

Under U.S. GAAP, the Company is required to (a) measure certain assets and liabilities at fair value or (b) disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. A three-tier fair value hierarchy prioritizes the inputs used in measuring fair value. These tiers include:

• Level 1 - Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.

• Level 2 - Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in inactive markets, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

• Level 3 - Valuation inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include option pricing models, discounted cash flow models and similar techniques.

The fair value estimates of financial instruments are not necessarily indicative of the amounts we might pay or receive in actual market transactions. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Cash and Cash Equivalents

The carrying amount of cash and cash equivalents approximates fair value due to the short term maturity of the instruments. All cash and cash equivalents are denominated in U.S. currency.

Accounts Receivable

The carrying amount of accounts receivable approximates fair value due to the short-term nature of those items and the effect of related allowances for doubtful accounts.

Accounts Payable and Other Payables and Accrued Expenses

The carrying amounts of accounts payable and other payables and accrued expenses approximate fair value due to the short-term nature of those items.

Long-term Debt - Credit Agreements

Our long-term debt is traded in private markets on a less-than-daily basis. Fair value is based on the average of trading prices and bid/ask quotes around period-end (Level 2 inputs). The estimated fair values of our combined First and Second Lien Term Loans were $928.8 million and $753.0 million as of September 30, 2017 and December 31, 2016, respectively, compared to carrying values of $913.5 million and $742.9 million, which includes the current portion, and is net of unamortized discounts and deferred debt issuance costs. See Note 6 - Debt for further information related to debt transactions recorded during the three and nine months ended September 30, 2017.

Long-term Debt - Capital Leases

The fair value of capital lease obligations is based on estimated future contractual cash flows discounted at an appropriate market rate of interest (Level 2 inputs). The estimated fair values of our capital leases were $10.6 million and $2.9 million as of September 30, 2017 and December 31, 2016, respectively, compared to carrying values of $8.9 million and $2.7 million, respectively.

Interest Rate Derivatives

The Company is a party to three pay-fixed and receive-floating interest rate swap agreements to offset the variability of cash flows in LIBOR-indexed debt interest payments attributable to changes in the benchmark interest rate from March 13, 2017 to March 13, 2021 related to its current First Lien Credit Agreement. The Company designated these swap agreements as cash flow hedges at inception. Changes in the cash flows of each derivative are expected to be highly effective in offsetting the changes in interest payments on a principal balance equal to the derivative’s notional amount, attributable to the hedged risk. We have not had any ineffectiveness related to these instruments since inception.

We recognize as assets or liabilities at fair value the estimated amounts we would receive or pay upon a termination of interest rate swaps prior to their scheduled expiration dates. We record the period change in fair value of cash flow hedges, net of tax, in the accompanying condensed consolidated statements of comprehensive income and the cumulative change in fair value of cash flow hedges since inception, net of tax, in accumulated other comprehensive loss (“AOCL”) in the accompanying condensed consolidated balances sheets. Fair value is based on information that is model-driven and whose inputs are observable (Level 2 inputs).

Our cash flow hedge position related to interest rate derivative contracts is as follows:



In thousands	Notional Amount		Final Maturity Date	Other Payables and Accrued Expenses		Other Liabilities		AOCL, Net of Tax
As of September 30, 2017	$	500,000	March 2021	$	8,499	$	13,061	$	13,223
As of December 31, 2016	$	500,000	March 2021	$	8,218	$	15,518	$	14,556

As of September 30, 2017, the Company expects to reclassify $8.5 million of AOCL into earnings in the next 12 months. See Note 11- Accumulated Other Comprehensive Loss. Subsequent to the nine months ended September 30, 2017, the Company used proceeds in connection with the IPO to reduce outstanding debt. This event did not have a material impact on the hedge position for the nine months ended September 30, 2017 and is not expected to have an impact on the hedge position for the remainder of 2017. See Note 12 - Subsequent Events for transactions in connection with the IPO.

Stock Incentive Plan

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Incentive Plan

2014 Stock Incentive Plan

In 2014, our Board of Directors and stockholders of the Company approved the 2014 Stock Incentive Plan for Key Employees of NVHI (previously known as Nautilus Parent, Inc.) and Subsidiaries (the “2014 Stock Incentive Plan”). The 2014 Stock Incentive Plan was subsequently amended by our Board of Directors and our stockholders on November 9, 2015 and June 5, 2017 to increase the share reserve. The 2014 Stock Incentive Plan provides for the grant of stock options and other stock-based awards to employees, non-employee members of our Board of Directors, consultants, and other persons having a service relationship with us. We have reserved an aggregate of 10,988,827 shares of our common stock for issuance under our 2014 Stock Incentive Plan. As of September 30, 2017, options to purchase a total of 10,347,067 shares of common stock were issued and outstanding (excluding rollover options), 565,860 shares of common stock had been issued upon the exercise of options and 69,452 shares remained available for future grants.

The following presents a roll-forward of stock options, giving retroactive effect to the reverse stock split, for the nine months ended September 30, 2017:



Options issued and outstanding	Vested Rollover	Service-Based		Performance-Based	Total
Balance, December 31, 2016	169,050	3,528,526		5,765,156	9,462,732
Issued	—	505,928		759,025	1,264,953
Exercised	—	(211,568	)	—	(211,568	)
Balance, September 30, 2017	169,050	3,822,886		6,524,181	10,516,117

Options vested and exercisable
Balance, December 31, 2016	169,050	1,073,960		—	1,243,010
Vested during period	—	719,864		—	719,864
Exercised during period	—	(211,568	)	—	(211,568	)
Balance, September 30, 2017	169,050	1,582,256		—	1,751,306

The total estimated fair value of service-based options granted during the nine months ended September 30, 2017 was $4.6 million. During the same period, there were 16,274, 36,618, and 158,676 service-based options exercised at a price of $9.24 per share, $7.24 per share, and $4.27 per share, respectively, for a total intrinsic value of $1.5 million. As a result of the application of ASU No. 2016-09, the Company recorded an income tax benefit of $0.2 million in the condensed consolidated statement of operations and comprehensive income related to these exercises. There was no additional significant activity for the three months ended September 30, 2017.

The fair value of service-based options vested and outstanding as of September 30, 2017 was $9.4 million. The remaining unrecognized service cost for service-based options was $7.6 million as of September 30, 2017.

Compensation expense associated with service-based stock options is presented in selling, general, and administrative expenses (“SG&A”) in the accompanying condensed consolidated statements of operations and comprehensive income. The vesting of performance-based options is conditional upon the achievement by the majority stockholder in NVHI, KKR, with respect to its investment in NVHI, of both a minimum internal rate of return and a minimum multiple of invested capital and then increases proportionally as the multiple of invested capital increases up to a defined target. No compensation expense has been recorded in relation to performance based options since achievement of the conditions triggering vesting by the IPO, or otherwise, have not been deemed to be probable as of September 30, 2017.

See Note 12 - Subsequent Events for information about the adoption of a new omnibus incentive plan and related equity compensation matters in connection with the IPO.

Related Party Transactions

9 Months Ended

Sep. 30, 2017

Related Party Transactions

Transactions With Equity Sponsors

Under certain agreements we have entered into with our equity sponsors, we recorded the following expenses related to management and/or advisory fees:



In thousands	Three Months Ended September 30, 2017		Three Months Ended October 1, 2016		Nine Months Ended September 30, 2017		Nine Months Ended October 1, 2016
KKR	$	220	$	213	$	2,993	$	638
Berkshire	$	52	$	50	$	156	$	149

Fees paid to equity sponsors include retainer fees and certain other on-going project-oriented initiatives and are presented in SG&A in the accompanying condensed consolidated statements of operations and comprehensive income, except, as discussed further below in Note 6 - Debt, KCM fees for the nine months ended September 30, 2017 include $2.3 million presented in debt issuance costs, which were incurred in the first quarter of 2017. See Note 1 - Description of Business and Basis of Presentation for further details regarding transactions with our equity sponsors in conjunction with and following the IPO.

Dividend & Stockholders’ Equity

On February 2, 2017, the Company declared a recapitalization dividend to its stockholders, which included KKR, Berkshire, and management. Common stockholders received a dividend per common share of $1.51. There were 110.5 million common shares outstanding and eligible for the dividend. Vested and roll-over option holders received an additional cash payment of $1.51 per option, for an aggregate payment of $3.7 million. The income tax benefit of the additional cash payment was $1.4 million, which was incurred in the first quarter of 2017, is included in the condensed consolidated statement of operations and comprehensive income for the nine months ended September 30, 2017. The exercise price of unvested options was reduced by $1.51 per option, the amount of the dividend. Since the Company was in an accumulated deficit position on the date of declaration of the dividend, according to our accounting policy the combined total cash payment of $171.0 million was recorded as a reduction to additional paid-in capital. No other material non-recurring charges were recorded to stockholders’ equity during the three and nine months ended September 30, 2017.

Debt	9 Months Ended
Debt	Sep. 30, 2017
Debt Disclosure [Abstract]
Debt	Debt The dividend discussed in Note 5 - Related Party Transactions was funded with $175.0 million in borrowed funds under the Company’s First Lien Credit Agreement, net of a $1.3 million original issue discount. The borrowing rate was 4.0%, consistent with the existing credit agreement. Quarterly principal payments increased $0.5 million, which increased current maturities from $6.5 million as of December 31, 2016, to $8.3 million as of September 30, 2017. The additional principal matures consistent with the original First Lien Term Loans on March 13, 2021. We recorded $2.3 million in fees to KKR and $0.4 million in third party fees in debt issuance costs in the condensed consolidated statement of operations and comprehensive income during the nine months ended September 30, 2017, which were incurred in the first quarter of 2017. See Note 12 - Subsequent Events for further details regarding debt in conjunction with and following the IPO. The Company entered into multiple new capital leases during the nine months ended September 30, 2017. As of September 30, 2017, our capital lease commitments are $0.5 million, $2.2 million, $1.7 million, $1.4 million, $1.3 million and $6.4 million for fiscal years 2017, 2018, 2019, 2020, 2021 and thereafter, respectively.

Equity Method Investment	9 Months Ended
Equity Method Investment	Sep. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investment	Equity Method Investment The Company has an investment in a private start-up company whose principal business is licensing software to eyeglass retailers. Under the equity method of accounting we are required to record our interest in the investee’s reported net income or loss for each reporting period, which is presented in other expense, net in the Company’s condensed consolidated statements of operations and comprehensive income. On August 29, 2017, the investee issued a secured convertible promissory note to the Company, in a principal amount of $1.5 million, due at maturity, which was recorded in other assets in the accompanying balance sheets. The promissory note, which matures on August 29, 2020 bears interest at a fixed rate of 5.00% with an additional variable interest component based on the base rate of Bank of England, as published on the first day of each calendar year, which is 0.25% for 2017. After adjusting our investment for our interest in the investee’s reported net losses, our investment balance in the business was $2.6 million and $3.3 million as of September 30, 2017 and December 31, 2016, respectively, which is included in other assets in the accompanying condensed consolidated balance sheets.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, the Company is involved in various legal proceedings incidental to its business. The Company reviews the status of its legal proceedings and records a provision for a liability when it is considered probable that both a liability has been incurred and the amount of the loss can be reasonably estimated. The Company’s subsidiary, FirstSight Vision Services, Inc. (“FirstSight”) is a defendant, in a purported class action in the U.S. District Court for the Southern District of California that alleges that FirstSight participated in arrangements that caused the illegal delivery of eye examinations and that FirstSight thereby violated, among other laws, the corporate practice of optometry and the unfair competition and false advertising laws of California. On March 23, 2017, the court granted the motion to dismiss previously filed by FirstSight and dismissed the complaint with prejudice. The plaintiffs filed an appeal to the U.S. Court of Appeals for the Ninth Circuit in April 2017. The Company believes that the claims are without merit. In May 2017, a complaint was filed against the Company and other defendants alleging, on behalf of a proposed class of consumers who purchased contact lenses online, that 1-800 Contacts, Inc. entered into a series of agreements with the other defendants, including the Company’s subsidiary, Arlington Contact Lens Service, Inc. (“AC Lens”), to suppress certain online advertising and that each defendant thereby engaged in anticompetitive conduct in violation of the Sherman Antitrust Act (the “1-800 Contacts Matter”). The Company has settled the 1-800 Contacts Matter for $7.0 million, without admitting liability. Accordingly, the Company recorded a $7.0 million charge in litigation settlement in the accompanying condensed consolidated statement of operations and comprehensive income during the nine months ended September 30, 2017, which were incurred in the second quarter of 2017. See Note 12 - Subsequent Events.

Segment Reporting

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment Reporting

The Company’s reportable segments were determined on the same basis as used by the Chief Operating Decision Maker (“CODM”) to evaluate performance internally. Our operations consist of two reportable segments:

• Owned & host store brands - Our owned brands consist of our America’s Best and Eyeglass World operating segments. Our host brands consist of our Vista Optical operating segments at certain U.S. Military Branches and inside Fred Meyer stores. We have aggregated our owned and host operating segments into a single reportable segment due to similar economic characteristics and similarity of the nature of products and services, production processes, class of customers, regulatory environment, and distribution methods of those brands.

• Legacy - The Company manages the operations of 227 legacy retail vision centers within Walmart stores. We earn management fees as a result of providing such services and therefore we record revenue related to sales of products and product protection plans to our legacy partner’s customers on a net basis. We also sell to our legacy partner wholesale merchandise that is stocked in retail locations, and provide central lab processing services for the finished eyeglasses and frames expected to be sold to our legacy partner’s customers. We lease space from our legacy partner within or adjacent to each of the locations we manage and use this space for the provision of optometric examination services. Our legacy agreements were renewed on January 13, 2017, and expire on August 23, 2020, subject to extension pursuant to the terms of the agreements. Sales of services and plans in our legacy segment consist of fees earned for managing the operations of our legacy partner and revenues associated with the provision of eye exams. Revenue associated with managing operations of our legacy partner were $9.1 million and $28.3 million for the three and nine months ended September 30, 2017 and $9.7 million and $29.9 million for the three and nine months ended October 1, 2016, respectively.

The “Corporate/Other” category includes the results of operations of our other operating segments and corporate overhead support. The “Reconciliations” category represents other adjustments to reportable segment results necessary for the presentation of consolidated financial results in accordance with U.S. GAAP for the two reportable segments.

Revenues from the Corporate/Other segments are attributable to the AC Lens, and FirstSight operating segments and the Company’s corporate function. AC Lens sells contact lenses and optical accessory products to retail customers through e-commerce. AC Lens also distributes contact lenses to Walmart and Sam’s Club under fee for services arrangements. FirstSight sells single service health plans in connection with the operations of America’s Best in California, arranges for the provision of eye exams at retail locations throughout California and also sells contact lenses to its members in certain locations. None of those segments met the quantitative thresholds for determining reportable segments for any of the periods presented.

Our reportable segment profit measure is EBITDA, or net revenue, less cost applicable to revenue, less selling, general and administrative costs. Asset impairment, depreciation and amortization, and other corporate costs that are not allocated to the segments, including interest expense, debt issuance costs and litigation settlements, are excluded from segment EBITDA. There are no transactions between our reportable segments. There are no differences between the measurement of our reportable segments’ assets and consolidated assets. There have been no changes from prior periods in the measurement methods used to determine reportable segment profit or loss, and there have been no asymmetrical allocations to segments.

The following is a summary of certain financial data for each of our segments. Reportable segment information is presented on the same basis as our condensed consolidated financial statements, except for net revenue, which is presented on a cash basis, excluding the effects of unearned and deferred revenue, consistent with the basis on which the CODM regularly reviews performance segments. Asset information is not included in the following summary since the CODM does not regularly review such information for the reportable segments.



	Three Months Ended September 30, 2017
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	211,035	$	24,503	$	46,421		$	1,689		$	283,648
Segment services and plans revenues	48,119		12,864		3,110			(1,652		)	62,441
Total net revenue	259,154		37,367		49,531			37			346,089
Cost of products	63,159		11,427		40,699			467			115,752
Cost of services and plans	39,395		4,579		2,632			—			46,606
Total costs applicable to revenue	102,554		16,006		43,331			467			162,358
SG&A	103,851		12,904		34,496			—			151,251
Other expense, net	—		—		568			—			568
EBITDA	$	52,749	$	8,457	$	(28,864	)	$	(430	)	31,912
Depreciation and amortization											15,352
Interest expense, net											14,851
Income before income taxes											$	1,709



	Three Months Ended October 1, 2016
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	184,292	$	25,134	$	37,977		$	(765	)	$	246,638
Segment services and plans revenues	40,331		12,220		4,408			(2,381		)	54,578
Total net revenue	224,623		37,354		42,385			(3,146		)	301,216
Cost of products	54,157		11,749		33,240			(50		)	99,096
Cost of services and plans	32,816		2,933		3,819			—			39,568
Total costs applicable to revenue	86,973		14,682		37,059			(50		)	138,664
SG&A	91,000		12,984		30,473			—			134,457
Other expense, net	—		—		563			—			563
EBITDA	$	46,650	$	9,688	$	(25,710	)	$	(3,096	)	27,532
Depreciation and amortization											13,217
Interest expense, net											9,728
Income before income taxes											$	4,587



	Nine Months Ended September 30, 2017
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	649,526	$	78,828	$	134,371		$	4,467		$	867,192
Segment services and plans revenues	146,415		37,840		11,274			(9,232		)	186,297
Total net revenue	795,941		116,668		145,645			(4,765		)	1,053,489
Cost of products	190,604		37,138		120,116			1,241			349,099
Cost of services and plans	113,902		11,909		9,663			—			135,474
Total costs applicable to revenue	304,506		49,047		129,779			1,241			484,573
SG&A	304,168		39,087		102,459			—			445,714
Asset impairment	—		—		1,000			—			1,000
Debt issuance costs	—		—		2,702			—			2,702
Litigation settlement	—		—		7,000			—			7,000
Other expense, net	—		—		744			—			744
EBITDA	$	187,267	$	28,534	$	(98,039	)	$	(6,006	)	111,756
Depreciation and amortization											44,404
Interest expense, net											40,965
Income before income taxes											$	26,387



	Nine Months Ended October 1, 2016
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	560,794	$	79,099	$	113,639		$	3,255		$	756,787
Segment services and plans revenues	122,455		37,749		13,483			(11,393		)	162,294
Total net revenue	683,249		116,848		127,122			(8,138		)	919,081
Cost of products	163,059		37,118		98,309			934			299,420
Cost of services and plans	94,831		8,723		11,479						115,033
Total costs applicable to revenue	257,890		45,841		109,788			934			414,453
SG&A	260,537		39,783		95,065			—			395,385
Asset impairment	—		—		52			—			52
Other expense, net	—		—		1,217			—			1,217
EBITDA	$	164,822	$	31,224	$	(79,000	)	$	(9,072	)	107,974
Depreciation and amortization											38,237
Interest expense, net											29,377
Income before income taxes											$	40,360

Earnings Per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income by the weighted average shares outstanding for the period and include the dilutive impact of potential new shares issuable upon exercise of stock options and vesting of restricted stock units. Potentially dilutive securities are excluded from the computation of diluted EPS if their effect is anti-dilutive. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows:



	Three Months Ended				Nine Months Ended
In thousands, except EPS data	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Net income	$	1,546	$	3,026	$	17,120	$	24,467
Weighted average shares outstanding for basic EPS	56,414		56,211		56,363		56,176
Effect of dilutive securities:
Stock options	2,045		959		1,918		638
Weighted average shares outstanding for diluted EPS	58,459		57,170		58,281		56,814
Basic EPS	$	0.03	$	0.05	$	0.30	$	0.44
Diluted EPS	$	0.03	$	0.05	$	0.29	$	0.43
Anti-dilutive options outstanding excluded from EPS	—		—		339		92

Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Accumulated Other Comprehensive Loss

Changes in the fair value of the Company’s cash flow hedge derivative instruments since inception are recorded in AOCL. The following table presents the change in AOCL during the three and nine months ended September 30, 2017 and October 1, 2016, respectively, net of tax:



In thousands	Three Months Ended September 30, 2017			Three Months Ended October 1, 2016			Nine Months Ended September 30, 2017			Nine Months Ended October 1, 2016
Cash flow hedging activity
Balance at beginning of period	$	(14,605	)	$	(18,909	)	$	(14,556	)	$	(11,284	)
Other comprehensive loss before reclassification	(228		)	(401		)	(2,424		)	(8,026		)
Amount reclassified from AOCL	1,610			—			3,757			—
Net current period other comprehensive income (loss), net of tax	1,382			(401		)	1,333			(8,026		)
Balance at end of period	$	(13,223	)	$	(19,310	)	$	(13,223	)	$	(19,310	)

Amounts reclassified from AOCL to earnings are included in interest expense in the accompanying condensed consolidated statements of operations and comprehensive income. See Note 3 - Fair Value Measurements of Financial Assets and Liabilities for a description of the Company’s use of cash flow hedging derivatives.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Initial Public Offering The Company completed the IPO of its common stock in October 2017. See Note 1 - Description of Business and Basis of Presentation for disclosures related to the IPO and other related transactions. Stock Split Effective October 24, 2017, the Company effected a 1.96627-for-one reverse stock split of the Company’s common stock. See Note 1 - Description of Business and Basis of Presentation for disclosure related to the Company’s reverse stock split. 2017 Omnibus Incentive Plan In connection with the IPO, on October 23, 2017 the Company’s Board of Directors adopted, and its stockholders approved, the National Vision Holdings, Inc. 2017 Omnibus Incentive Plan (the “2017 Omnibus Incentive Plan”). The 2017 Omnibus Incentive Plan provides that the total number of shares of common stock that may be issued under the plan is 4,000,000. Under the plan, we may grant stock options, stock appreciation rights, restricted stock, restricted stock units, other equity-based awards and other cash-based awards to our employees, directors, officers, consultants and advisors. Additional information about the 2017 Omnibus Incentive Plan is included in the Prospectus, see “Management-Executive Compensation-Narrative to Summary Compensation Table and 2016 Grants of Plan-Based Awards-Equity Incentive Plans.” October 2017 Issuances of Restricted Stock Units and Stock Options Effective October 25, 2017, we granted stock options to purchase 92,443 shares of our common stock at $22.00 per share to an employee under the 2017 Omnibus Incentive Plan. The stock options will vest in three equal installments on the first, second and third anniversary of the grant date. Non-cash stock based compensation expense associated with the grant will be approximately $0.8 million expensed over three years. Effective October 26, 2017, we granted an aggregate of 175,273 restricted stock units to certain employees under the 2017 Omnibus Incentive Plan, with 58,909 units vesting in two equal installments on the first and second anniversary of the grant date, and 116,364 units vesting in three equal installments on the first, second and third anniversary of the grant date. Non-cash stock based compensation expense associated with the grants will be approximately $1.3 million expensed over two years and $2.6 million expensed over three years. Second Amended and Restated Certificate of Incorporation and Bylaws The Company’s Second Amended and Restated Certificate of Incorporation became effective in connection with the completion of the IPO on October 30, 2017. The Charter, among other things, provides that the Company’s authorized capital stock consists of 200,000,000 shares of Common Stock, and 50,000,000 shares of preferred stock, par value $0.01 per share. The Company’s bylaws were also amended and restated as of October 30, 2017. Revolving Credit Facility - Joinder and Amendment Agreement On October 31, 2017, the credit agreement dated as of March 13, 2014, among Nautilus Acquisition Holdings, Inc., a wholly-owned subsidiary of the Company, NVI, as borrower, Goldman Sachs Bank USA, as administrative agent, collateral agent, swingline lender and letter of credit issuer, and the lenders from time to time party thereto and the other parties thereto (the “Credit Agreement”), was amended pursuant to a joinder and amendment agreement to (a) increase the size of the first lien revolving credit facility thereunder from $75.0 million to $100.0 million and (b) extend the maturity of such facility to October 15, 2022 (subject to customary springing maturity provisions to the extent the existing first lien term loans are not extended). KCM, Goldman Sachs Bank USA and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint lead arrangers with respect to the joinder and amendment agreement and in aggregate received fees of $0.7 million, of which $0.3 million was received by KCM. KKR Credit, the global credit business of KKR, did not participate in the new first lien loans and currently has no interest in our outstanding loans. First Lien Credit Agreement - Joinder and Amendment Agreement On November 20, 2017, the Credit Agreement was amended pursuant to a joinder and amendment agreement to, among other things, (a) establish new first lien term loans in an aggregate principal amount of $570.0 million to refinance all of the first lien term loans outstanding immediately prior to the amendment, (b) extend the maturity of such term loans to November 20, 2024 and (c) reprice the rates applicable to such term loans by amending the definitions of ABR, Applicable Margin and LIBOR Rate (each, as defined in the Credit Agreement). Pursuant to the joinder and amendment agreement, the initial new Applicable Margins are (i) 2.75% for the new first lien term loans that are LIBOR Loans (as defined in the Credit Agreement), which is 25 basis points lower than the previous interest rate margin and (ii) 1.75% for the new first lien term loans that are ABR Loans (as defined in the Credit Agreement), which is 25 basis points lower than the previous interest rate margin. The joinder and amendment agreement further provides that the above Applicable Margins for the new term loans will be based on NVI’s public corporate credit rating from Moody’s as follows: (i) if NVI’s rating is lower than Ba3 (stable), the Applicable Margin will be 2.75% for LIBOR Loans and 1.75% for ABR Loans and (ii) if NVI’s rating is Ba3 (stable) or better, the Applicable Margin will step down to 2.50% for LIBOR Loans and 1.5% for ABR Loans, as specified in the joinder and amendment agreement. KCM, Goldman Sachs Bank USA and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint lead arrangers with respect to the joinder and amendment agreement and in aggregate received fees of $0.7 million, of which $0.3 million was received by KCM. KKR Credit, the global credit business of KKR, did not participate in the new first lien loans and currently has no interest in our outstanding loans. 1-800 Contacts Matter On November 8, 2017, the court in the 1-800 Contacts Matter entered an order preliminarily approving the settlement agreement, subject to a settlement hearing. Pursuant to this order, the Company deposited 50% of the settlement amount, or $3.5 million, into an escrow account, to be distributed subject to and in accordance the terms of the settlement agreement and any further order of the court. See Note 8 - Commitments and Contingencies for additional details.

Description of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and, therefore, do not include all information and footnotes required by U.S. GAAP for complete consolidated financial statements. The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited consolidated balance sheet for the fiscal year then ended. These unaudited interim condensed consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s consolidated financial position as of September 30, 2017, the consolidated results of operations for the three and nine months ended September 30, 2017 and October 1, 2016, and consolidated cash flows for the nine months ended September 30, 2017 and October 1, 2016. Certain information and footnote disclosures normally included in our annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted; however, we believe that the disclosures included herein are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the fiscal year ended December 31, 2016 included in the Company’s final prospectus dated October 25, 2017 (the “Prospectus”), as filed with the Securities and Exchange Commission (the “SEC”) on October 27, 2017 pursuant to Rule 424(b)(4) under the Securities Act Securities Act of 1933, as amended (the “Securities Act”). The significant accounting policies followed by the Company are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes in our significant accounting policies during the nine months ended September 30, 2017, except for the adoption of Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting and ASU No. 2017-04, Intangibles - Goodwill and Other, neither of which had a material effect on the Company’s consolidated financial condition, results of operations, or cash flows. The condensed consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation.
Fiscal Year	Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2017 contains 52 weeks and will end on December 30, 2017. All three and nine month periods presented herein contain 13 and 39 weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Deferred Offering Costs	Deferred Offering Costs We capitalize legal and accounting fees directly relating to the IPO. These deferred offering costs will be offset against offering proceeds during the fourth fiscal quarter of 2017.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. ASU No. 2014-09 provides new guidance related to the core principle that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. During 2016, the FASB issued additional ASUs to clarify certain aspects of ASU No. 2014-09, including ASU No. 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net) in March 2016, and ASU No. 2016-10, Identifying Performance Obligations and Licensing in April 2016. The guidance is effective for fiscal years beginning after December 15, 2017, and interim reporting periods within that fiscal year. The Company will adopt this new guidance in the first quarter of 2018 using the modified retrospective method. The most significant components of the new guidance to the Company relate to performance obligations surrounding our bundled product and service offerings and the reporting of revenue on a gross versus net basis with respect to our management and services agreement with Walmart, and the timing of revenue recognition associated with our discount club membership fees. We are currently finalizing our assessment, but we do not expect the adoption of this new guidance to have a significant impact on the timing or amount of revenue recognized in our consolidated financial results based on our implementation progress to-date. We do expect incremental additional disclosures in the notes to our consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases. The new guidance establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either financing or operating, with such classification affecting the pattern of expense recognition in the statement of operations. The guidance is effective for fiscal years beginning after December 15, 2018, and interim reporting periods within that fiscal year. A modified transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company will adopt this new guidance in the first quarter of 2019. We are evaluating the impact of implementation of this new guidance on our consolidated financial statements, but expect that adoption will have a material impact to the Company’s total assets and liabilities since we have a significant number of operating leases not currently recognized on our consolidated balance sheets. In April 2016, FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. This new guidance simplifies the accounting for share-based payment transactions, including income tax consequences, classification of certain items on the statement of cash flows, forfeitures, and minimum statutory withholding requirements. This new guidance is effective for fiscal years beginning after December 15, 2016, and interim reporting periods within that fiscal year. We adopted this new guidance in the first quarter of 2017. The adoption of this new guidance did not have a material effect on the Company’s financial condition, results of operations, or cash flows. In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other. This new guidance removes Step 2 of the goodwill impairment test. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance will be applied prospectively, and is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We adopted this new guidance during the first quarter of 2017. The adoption of this new guidance did not have a material effect on the Company’s financial condition, results of operations, or cash flows.

Details of Certain Balance Sheet Accounts (Tables)

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable, Net



In thousands	As of September 30, 2017			As of December 31, 2016
Accounts receivable, net:
Trade receivables	$	25,985		$	20,817
Credit card receivables	7,534			9,398
Tenant improvement allowances receivable	5,132			3,308
Other receivables	2,613			2,430
Allowance for uncollectible accounts	(2,153		)	(1,583		)
	$	39,111		$	34,370

Inventories:
Raw materials and work in process ⁽¹⁾	$	41,985		$	42,266
Finished goods	47,385			44,798
	$	89,370		$	87,064
(1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, the Company does not separately present raw materials and work in process.

Property and equipment, net:
Land and building	$	3,608		$	3,607
Equipment	193,945			161,714
Furniture and fixtures	41,228			36,046
Leasehold improvements	145,661			121,963
Construction in progress	32,732			28,099
Property under capital leases	9,262			3,244
	426,436			354,673
Less accumulated depreciation	135,780			98,259
	$	290,656		$	256,414

Schedule of Inventories



In thousands	As of September 30, 2017			As of December 31, 2016
Accounts receivable, net:
Trade receivables	$	25,985		$	20,817
Credit card receivables	7,534			9,398
Tenant improvement allowances receivable	5,132			3,308
Other receivables	2,613			2,430
Allowance for uncollectible accounts	(2,153		)	(1,583		)
	$	39,111		$	34,370

Inventories:
Raw materials and work in process ⁽¹⁾	$	41,985		$	42,266
Finished goods	47,385			44,798
	$	89,370		$	87,064
(1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, the Company does not separately present raw materials and work in process.

Property and equipment, net:
Land and building	$	3,608		$	3,607
Equipment	193,945			161,714
Furniture and fixtures	41,228			36,046
Leasehold improvements	145,661			121,963
Construction in progress	32,732			28,099
Property under capital leases	9,262			3,244
	426,436			354,673
Less accumulated depreciation	135,780			98,259
	$	290,656		$	256,414

Schedule of Property and Equipment, Net



In thousands	As of September 30, 2017			As of December 31, 2016
Accounts receivable, net:
Trade receivables	$	25,985		$	20,817
Credit card receivables	7,534			9,398
Tenant improvement allowances receivable	5,132			3,308
Other receivables	2,613			2,430
Allowance for uncollectible accounts	(2,153		)	(1,583		)
	$	39,111		$	34,370

Inventories:
Raw materials and work in process ⁽¹⁾	$	41,985		$	42,266
Finished goods	47,385			44,798
	$	89,370		$	87,064
(1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, the Company does not separately present raw materials and work in process.

Property and equipment, net:
Land and building	$	3,608		$	3,607
Equipment	193,945			161,714
Furniture and fixtures	41,228			36,046
Leasehold improvements	145,661			121,963
Construction in progress	32,732			28,099
Property under capital leases	9,262			3,244
	426,436			354,673
Less accumulated depreciation	135,780			98,259
	$	290,656		$	256,414

Schedule of Other Payables and Accrued Expenses



In thousands	As of September 30, 2017		As of December 31, 2016
Other payables and accrued expenses:
Employee compensation and benefits	$	29,238	$	18,984
Advertising	1,588		1,058
Self-insurance reserves	6,773		7,235
Reserves for customer returns and remakes	7,075		4,611
Capital expenditures	8,424		9,202
Legacy management and services agreement	5,306		4,591
Rental expenses	1,514		2,172
Fair value of derivative liabilities	8,499		8,218
Professional fees	2,938		1,298
Supplies and other store support expenses	3,033		3,489
Litigation settlements	7,469		422
Other	8,889		8,122
	$	90,746	$	69,402

Other non-current liabilities:
Fair value of derivative liabilities	$	13,061	$	15,518
Tenant improvements ⁽²⁾	22,831		21,089
Deferred rental expenses	7,169		6,256
Self-insurance reserves	4,147		3,908
Above market leases	952		1,705
Other	1,554		2,021
	$	49,714	$	50,497
(2) Obligations for tenant improvements are amortized as a reduction of rental expense over the respective lease term.

Schedule of Other Noncurrent Liabilities



In thousands	As of September 30, 2017		As of December 31, 2016
Other payables and accrued expenses:
Employee compensation and benefits	$	29,238	$	18,984
Advertising	1,588		1,058
Self-insurance reserves	6,773		7,235
Reserves for customer returns and remakes	7,075		4,611
Capital expenditures	8,424		9,202
Legacy management and services agreement	5,306		4,591
Rental expenses	1,514		2,172
Fair value of derivative liabilities	8,499		8,218
Professional fees	2,938		1,298
Supplies and other store support expenses	3,033		3,489
Litigation settlements	7,469		422
Other	8,889		8,122
	$	90,746	$	69,402

Other non-current liabilities:
Fair value of derivative liabilities	$	13,061	$	15,518
Tenant improvements ⁽²⁾	22,831		21,089
Deferred rental expenses	7,169		6,256
Self-insurance reserves	4,147		3,908
Above market leases	952		1,705
Other	1,554		2,021
	$	49,714	$	50,497
(2) Obligations for tenant improvements are amortized as a reduction of rental expense over the respective lease term.

Fair Value Measurements of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Cash Flow Hedge Derivative Contracts

Our cash flow hedge position related to interest rate derivative contracts is as follows:



In thousands	Notional Amount		Final Maturity Date	Other Payables and Accrued Expenses		Other Liabilities		AOCL, Net of Tax
As of September 30, 2017	$	500,000	March 2021	$	8,499	$	13,061	$	13,223
As of December 31, 2016	$	500,000	March 2021	$	8,218	$	15,518	$	14,556

Stock Incentive Plan (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock Option Activity

The following presents a roll-forward of stock options, giving retroactive effect to the reverse stock split, for the nine months ended September 30, 2017:



Options issued and outstanding	Vested Rollover	Service-Based		Performance-Based	Total
Balance, December 31, 2016	169,050	3,528,526		5,765,156	9,462,732
Issued	—	505,928		759,025	1,264,953
Exercised	—	(211,568	)	—	(211,568	)
Balance, September 30, 2017	169,050	3,822,886		6,524,181	10,516,117

Options vested and exercisable
Balance, December 31, 2016	169,050	1,073,960		—	1,243,010
Vested during period	—	719,864		—	719,864
Exercised during period	—	(211,568	)	—	(211,568	)
Balance, September 30, 2017	169,050	1,582,256		—	1,751,306

Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2017

Under certain agreements we have entered into with our equity sponsors, we recorded the following expenses related to management and/or advisory fees:



In thousands	Three Months Ended September 30, 2017		Three Months Ended October 1, 2016		Nine Months Ended September 30, 2017		Nine Months Ended October 1, 2016
KKR	$	220	$	213	$	2,993	$	638
Berkshire	$	52	$	50	$	156	$	149

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Schedule of Financial Data by Segment



	Three Months Ended September 30, 2017
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	211,035	$	24,503	$	46,421		$	1,689		$	283,648
Segment services and plans revenues	48,119		12,864		3,110			(1,652		)	62,441
Total net revenue	259,154		37,367		49,531			37			346,089
Cost of products	63,159		11,427		40,699			467			115,752
Cost of services and plans	39,395		4,579		2,632			—			46,606
Total costs applicable to revenue	102,554		16,006		43,331			467			162,358
SG&A	103,851		12,904		34,496			—			151,251
Other expense, net	—		—		568			—			568
EBITDA	$	52,749	$	8,457	$	(28,864	)	$	(430	)	31,912
Depreciation and amortization											15,352
Interest expense, net											14,851
Income before income taxes											$	1,709



	Three Months Ended October 1, 2016
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	184,292	$	25,134	$	37,977		$	(765	)	$	246,638
Segment services and plans revenues	40,331		12,220		4,408			(2,381		)	54,578
Total net revenue	224,623		37,354		42,385			(3,146		)	301,216
Cost of products	54,157		11,749		33,240			(50		)	99,096
Cost of services and plans	32,816		2,933		3,819			—			39,568
Total costs applicable to revenue	86,973		14,682		37,059			(50		)	138,664
SG&A	91,000		12,984		30,473			—			134,457
Other expense, net	—		—		563			—			563
EBITDA	$	46,650	$	9,688	$	(25,710	)	$	(3,096	)	27,532
Depreciation and amortization											13,217
Interest expense, net											9,728
Income before income taxes											$	4,587



	Nine Months Ended September 30, 2017
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	649,526	$	78,828	$	134,371		$	4,467		$	867,192
Segment services and plans revenues	146,415		37,840		11,274			(9,232		)	186,297
Total net revenue	795,941		116,668		145,645			(4,765		)	1,053,489
Cost of products	190,604		37,138		120,116			1,241			349,099
Cost of services and plans	113,902		11,909		9,663			—			135,474
Total costs applicable to revenue	304,506		49,047		129,779			1,241			484,573
SG&A	304,168		39,087		102,459			—			445,714
Asset impairment	—		—		1,000			—			1,000
Debt issuance costs	—		—		2,702			—			2,702
Litigation settlement	—		—		7,000			—			7,000
Other expense, net	—		—		744			—			744
EBITDA	$	187,267	$	28,534	$	(98,039	)	$	(6,006	)	111,756
Depreciation and amortization											44,404
Interest expense, net											40,965
Income before income taxes											$	26,387



	Nine Months Ended October 1, 2016
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	560,794	$	79,099	$	113,639		$	3,255		$	756,787
Segment services and plans revenues	122,455		37,749		13,483			(11,393		)	162,294
Total net revenue	683,249		116,848		127,122			(8,138		)	919,081
Cost of products	163,059		37,118		98,309			934			299,420
Cost of services and plans	94,831		8,723		11,479						115,033
Total costs applicable to revenue	257,890		45,841		109,788			934			414,453
SG&A	260,537		39,783		95,065			—			395,385
Asset impairment	—		—		52			—			52
Other expense, net	—		—		1,217			—			1,217
EBITDA	$	164,822	$	31,224	$	(79,000	)	$	(9,072	)	107,974
Depreciation and amortization											38,237
Interest expense, net											29,377
Income before income taxes											$	40,360

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Schedule of Reconciliation of Basic and Diluted EPS Calculations

A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows:



	Three Months Ended				Nine Months Ended
In thousands, except EPS data	September 30, 2017		October 1, 2016		September 30, 2017		October 1, 2016
Net income	$	1,546	$	3,026	$	17,120	$	24,467
Weighted average shares outstanding for basic EPS	56,414		56,211		56,363		56,176
Effect of dilutive securities:
Stock options	2,045		959		1,918		638
Weighted average shares outstanding for diluted EPS	58,459		57,170		58,281		56,814
Basic EPS	$	0.03	$	0.05	$	0.30	$	0.44
Diluted EPS	$	0.03	$	0.05	$	0.29	$	0.43
Anti-dilutive options outstanding excluded from EPS	—		—		339		92

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following table presents the change in AOCL during the three and nine months ended September 30, 2017 and October 1, 2016, respectively, net of tax:



In thousands	Three Months Ended September 30, 2017			Three Months Ended October 1, 2016			Nine Months Ended September 30, 2017			Nine Months Ended October 1, 2016
Cash flow hedging activity
Balance at beginning of period	$	(14,605	)	$	(18,909	)	$	(14,556	)	$	(11,284	)
Other comprehensive loss before reclassification	(228		)	(401		)	(2,424		)	(8,026		)
Amount reclassified from AOCL	1,610			—			3,757			—
Net current period other comprehensive income (loss), net of tax	1,382			(401		)	1,333			(8,026		)
Balance at end of period	$	(13,223	)	$	(19,310	)	$	(13,223	)	$	(19,310	)

Description of Business and Basis of Presentation - Nature of Operations (Details)	Sep. 30, 2017 distribution_center store store_brand laboratory	Dec. 31, 2016 store
Accounting Policies [Abstract]
Number of optical laboratories \| laboratory	3
Number of distribution centers \| distribution_center	2
Number of retail optical locations \| store	996	943
Number of store brands \| store_brand	5

Description of Business and Basis of Presentation - Initial Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended			9 Months Ended
	Oct. 30, 2017	Dec. 30, 2017	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Class of Stock [Line Items]
Repayments of long-term debt					$ 6,236	$ 4,886
KKR
Class of Stock [Line Items]
Termination fees to related party			$ 220	$ 213	2,993	638
Berkshire
Class of Stock [Line Items]
Termination fees to related party			$ 52	$ 50	$ 156	$ 149
Forecast
Class of Stock [Line Items]
Extinguishment of debt		$ 353,300
Subsequent Event
Class of Stock [Line Items]
Transaction-related expenses expected during fourth quarter	$ 4,000
Component of proceeds from initial public offering to be used for general corporate purposes	11,800
Subsequent Event \| KKR
Class of Stock [Line Items]
Termination fees to related party	$ 3,600
Ownership percentage in Company retained by equity sponsor	58.20%
Subsequent Event \| Berkshire
Class of Stock [Line Items]
Termination fees to related party	$ 800
Ownership percentage in Company retained by equity sponsor	13.60%
Subsequent Event \| Term Loan \| First Lien Term Loans
Class of Stock [Line Items]
Repayments of long-term debt	$ 235,000
Subsequent Event \| Term Loan \| Second Lien Term Loans
Class of Stock [Line Items]
Repayments of long-term debt	$ 125,000
Subsequent Event \| IPO
Class of Stock [Line Items]
Shares issued in initial public offering (shares)	18,170,000
Shares issued, offering price (in usd per share)	$ 22.00
Net proceeds from initial public offering	$ 375,800
Underwriting discounts and commissions	24,000
Subsequent Event \| IPO \| KKR
Class of Stock [Line Items]
Underwriting discounts and commissions	$ 700
Subsequent Event \| Underwriter Option
Class of Stock [Line Items]
Shares issued in initial public offering (shares)	2,370,000

Description of Business and Basis of Presentation - Stock Split (Details)	Oct. 24, 2017 $ / shares shares	Oct. 30, 2017 shares	Sep. 30, 2017 $ / shares shares	Dec. 31, 2016 $ / shares shares
Subsequent Event [Line Items]
Common stock, par value (in usd per share) \| $ / shares			$ 0.01	$ 0.01
Common stock, shares authorized \| shares			200,000,000	200,000,000
Subsequent Event
Subsequent Event [Line Items]
Stock split conversion ratio	1.96627
Common stock, par value (in usd per share) \| $ / shares	$ 0.01
Common stock, shares authorized \| shares	200,000,000	200,000,000

Description of Business and Basis of Presentation - Deferred Offering Costs (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 30, 2017	Sep. 30, 2017	Oct. 01, 2016
Sale of Stock [Line Items]
Deferred offering costs		$ 3,200
Deferred offering costs accrued		$ 2,694	$ 0
Forecast
Sale of Stock [Line Items]
Deferred offering costs accrued	$ 1,600
Forecast \| Additional Paid-in Capital
Sale of Stock [Line Items]
Estimated increase to be recorded to additional paid-in-capital related to IPO	$ 371,000

Description of Business and Basis of Presentation - Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Accounting Policies [Abstract]
Effective income tax rate	9.50%	34.10%	35.20%	39.40%
Income tax benefit related to recapitalization dividend			$ 1.4
Reduction of effective income tax rate related to recapitalization dividend (percent)			5.30%
Reduction of effective income tax rate related to other items (percent)			0.50%
Increase in tax expense related to change in deferred tax asset valuation allowance			$ 0.4
Increase in effective tax rate related to change in deferred tax asset valuation allowance (percent)			1.50%

Description of Business and Basis of Presentation - Correction of an Error (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Jul. 01, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of products	$ 115,752		$ 99,096	$ 349,099	$ 299,420
Net income	$ 1,546		$ 3,026	$ 17,120	$ 24,467
Inventory Valuation \| Restatement Correction
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of products		$ 2,100
Net income		$ (1,300)

Description of Business and Basis of Presentation - Cost Method Investment (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 01, 2017	Sep. 30, 2017
Accounting Policies [Abstract]
Cost method investment, original cost		$ 1.0
Impairment of cost method investment	$ 1.0

Details of Certain Balance Sheet Accounts - Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts receivable, net:
Allowance for uncollectible accounts	$ (2,153)	$ (1,583)
Accounts receivable, net of allowances	39,111	34,370
Inventories:
Raw materials and work in process	41,985	42,266
Finished goods	47,385	44,798
Inventories	89,370	87,064
Property and equipment, net:
Property and equipment, gross	426,436	354,673
Less accumulated depreciation	135,780	98,259
Property and equipment, net	290,656	256,414
Trade receivables
Accounts receivable, net:
Accounts receivable, gross	25,985	20,817
Credit card receivables
Accounts receivable, net:
Accounts receivable, gross	7,534	9,398
Tenant improvement allowances receivable
Accounts receivable, net:
Accounts receivable, gross	5,132	3,308
Other receivables
Accounts receivable, net:
Accounts receivable, gross	2,613	2,430
Land and building
Property and equipment, net:
Property and equipment, gross	3,608	3,607
Equipment
Property and equipment, net:
Property and equipment, gross	193,945	161,714
Furniture and fixtures
Property and equipment, net:
Property and equipment, gross	41,228	36,046
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	145,661	121,963
Construction in progress
Property and equipment, net:
Property and equipment, gross	32,732	28,099
Property under capital leases
Property and equipment, net:
Property and equipment, gross	$ 9,262	$ 3,244

Details of Certain Balance Sheet Accounts - Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Other payables and accrued expenses:
Employee compensation and benefits	$ 29,238	$ 18,984
Advertising	1,588	1,058
Self-insurance reserves	6,773	7,235
Reserves for customer returns and remakes	7,075	4,611
Capital expenditures	8,424	9,202
Legacy management and services agreement	5,306	4,591
Rental expenses	1,514	2,172
Fair value of derivative liabilities	8,499	8,218
Professional fees	2,938	1,298
Supplies and other store support expenses	3,033	3,489
Litigation settlements	7,469	422
Other	8,889	8,122
Total other payables and accrued expenses	90,746	69,402
Other non-current liabilities:
Fair value of derivative liabilities	13,061	15,518
Tenant improvements	22,831	21,089
Deferred rental expenses	7,169	6,256
Self-insurance reserves	4,147	3,908
Above market leases	952	1,705
Other	1,554	2,021
Total other non-current liabilities	$ 49,714	$ 50,497

Fair Value Measurements of Financial Assets and Liabilities - Narrative (Details) - Level 2 - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Term Loan \| Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	$ 928.8	$ 753.0
Term Loan \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	913.5	742.9
Capital Lease Obligations \| Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	10.6	2.9
Capital Lease Obligations \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	$ 8.9	$ 2.7

Fair Value Measurements of Financial Assets and Liabilities - Cash Flow Hedge Derivative Contracts (Details)	Sep. 30, 2017 USD ($) agreement	Dec. 31, 2016 USD ($)
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities, current	$ 8,499,000	$ 8,218,000
Fair value of derivative liabilities, noncurrent	13,061,000	15,518,000
Estimated reclassification from AOCL to earnings in next 12 months	$ 8,500,000
Interest Rate Swap \| Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Number of interest rate swap agreements \| agreement	3
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Notional amount	$ 500,000,000	500,000,000
Fair value of derivative liabilities, current	8,499,000	8,218,000
Fair value of derivative liabilities, noncurrent	13,061,000	15,518,000
Hedge position in AOCL, net of tax	$ 13,223,000	$ 14,556,000

Stock Incentive Plan - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares reserved under stock incentive plan (shares)	10,988,827
Number of options issued and outstanding, excluding rollover options (shares)	10,516,117	9,462,732
Aggregate number of common shares issued upon option exercises under stock incentive plan (shares)	565,860
Number of shares available for future grants (shares)	69,452
Exercised (shares)	211,568
Tax benefit from option exercises	$ 0.2
Service-Based and Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options issued and outstanding, excluding rollover options (shares)	10,347,067
Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options issued and outstanding, excluding rollover options (shares)	3,822,886	3,528,526
Fair value of options granted	$ 4.6
Exercised (shares)	211,568
Intrinsic value of options exercised	$ 1.5
Fair value of options vested and outstanding	9.4
Unrecognized service cost	$ 7.6
Service-Based \| Option exercise price $9.24 per share
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercised (shares)	16,274
Exercise price of options exercised (in usd per share)	$ 9.24
Service-Based \| Option exercise price $7.24 per share
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercised (shares)	36,618
Exercise price of options exercised (in usd per share)	$ 7.24
Service-Based \| Option exercise price $4.27 per share
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercised (shares)	158,676
Exercise price of options exercised (in usd per share)	$ 4.27

Stock Incentive Plan - Stock Option Activity (Details)	9 Months Ended
Stock Incentive Plan - Stock Option Activity (Details)	Sep. 30, 2017 shares
Options issued and outstanding
Outstanding, beginning balance (shares)	9,462,732
Issued (shares)	1,264,953
Exercised (shares)	(211,568)
Outstanding, ending balance (shares)	10,516,117
Options vested and exercisable
Exercisable, beginning balance (shares)	1,243,010
Vested during period (shares)	719,864
Exercised during period (shares)	(211,568)
Exercisable, ending balance (shares)	1,751,306
Vested Rollover
Options issued and outstanding
Outstanding, beginning balance (shares)	169,050
Issued (shares)	0
Exercised (shares)	0
Outstanding, ending balance (shares)	169,050
Options vested and exercisable
Exercisable, beginning balance (shares)	169,050
Vested during period (shares)	0
Exercised during period (shares)	0
Exercisable, ending balance (shares)	169,050
Service-Based
Options issued and outstanding
Outstanding, beginning balance (shares)	3,528,526
Issued (shares)	505,928
Exercised (shares)	(211,568)
Outstanding, ending balance (shares)	3,822,886
Options vested and exercisable
Exercisable, beginning balance (shares)	1,073,960
Vested during period (shares)	719,864
Exercised during period (shares)	(211,568)
Exercisable, ending balance (shares)	1,582,256
Performance-Based
Options issued and outstanding
Outstanding, beginning balance (shares)	5,765,156
Issued (shares)	759,025
Exercised (shares)	0
Outstanding, ending balance (shares)	6,524,181
Options vested and exercisable
Exercisable, beginning balance (shares)	0
Vested during period (shares)	0
Exercised during period (shares)	0
Exercisable, ending balance (shares)	0

Related Party Transactions - Expenses Related to Management and Advisory Fees (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Related Party Transaction [Line Items]
Debt issuance costs			$ 2,702
KKR
Related Party Transaction [Line Items]
Expenses related to management and/or advisory fees	$ 220	$ 213	2,993	$ 638
Debt issuance costs			2,300
Berkshire
Related Party Transaction [Line Items]
Expenses related to management and/or advisory fees	$ 52	$ 50	$ 156	$ 149

Related Party Transactions - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions		9 Months Ended
	Feb. 02, 2017	Sep. 30, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Dividends paid per share of common stock (in usd per share)	$ 1.51
Common stock, shares, outstanding	110,500	56,477	56,202
Tax benefit from cash distribution to vested option holders		$ 1.4
Reduction in additional paid-in capital related to dividends in excess of retained earnings	$ 171.0
Stock Options
Related Party Transaction [Line Items]
Cash distribution per share to vested option holders (in usd per share)	$ 1.51
Cash distribution to vested option holders	$ 3.7
Reduction in exercise price for unvested options (in usd per share)	$ 1.51

Debt - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
Debt - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Feb. 02, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Debt issuance costs	$ 2,702
Capital Leases, Future Minimum Payments Due [Abstract]
Capital lease commitments due in fiscal year 2017	500
Capital lease commitments due in fiscal year 2018	2,200
Capital lease commitments due in fiscal year 2019	1,700
Capital lease commitments due in fiscal year 2020	1,400
Capital lease commitments due in fiscal year 2021	1,300
Capital lease commitments due thereafter	6,400
KKR
Debt Instrument [Line Items]
Debt issuance costs	2,300
First Lien Credit Agreement \| Term Loan
Debt Instrument [Line Items]
Borrowed funds		$ 175,000
Original issue discount		$ 1,300
Borrowing rate		4.00%
Increase in quarterly principal payments	500
Current maturities	8,300		$ 6,500
First Lien Credit Agreement \| Term Loan \| Third Party
Debt Instrument [Line Items]
Debt issuance costs	400
First Lien Credit Agreement \| Term Loan \| KKR
Debt Instrument [Line Items]
Debt issuance costs	$ 2,300

Equity Method Investment - Narrative (Details) - USD ($) $ in Millions	Aug. 29, 2017	Sep. 30, 2017	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Equity method investment		$ 2.6	$ 3.3
Equity Method Investee
Schedule of Equity Method Investments [Line Items]
Secured convertible promissory note receivable	$ 1.5
Fixed interest rate on note receivable (percent)	5.00%
Equity Method Investee \| Base Rate
Schedule of Equity Method Investments [Line Items]
Variable interest rate on note receivable (percent)	0.25%

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2017	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Loss Contingencies [Line Items]
Litigation settlement		$ 0	$ 0	$ 7,000	$ 0
1-800 Contacts Matter
Loss Contingencies [Line Items]
Amount of litigation settlement	$ 7,000
Litigation settlement				$ 7,000

Segment Reporting - Narrative (Details) $ in Millions	3 Months Ended		9 Months Ended
Segment Reporting - Narrative (Details) $ in Millions	Sep. 30, 2017 USD ($) store	Oct. 01, 2016 USD ($)	Sep. 30, 2017 USD ($) store segment	Oct. 01, 2016 USD ($)	Dec. 31, 2016 store
Segment Reporting Information [Line Items]
Number of reportable segments \| segment			2
Number of retail vision centers	996		996		943
Legacy
Segment Reporting Information [Line Items]
Number of retail vision centers	227		227
Revenue associated with managing operations of partner \| $	$ 9.1	$ 9.7	$ 28.3	$ 29.9

Segment Reporting - Financial Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Segment Reporting Information [Line Items]
Segment product revenues	$ 283,648	$ 246,638	$ 867,192	$ 756,787
Segment services and plans revenues	62,441	54,578	186,297	162,294
Total net revenue	346,089	301,216	1,053,489	919,081
Cost of products	115,752	99,096	349,099	299,420
Cost of services and plans	46,606	39,568	135,474	115,033
Total costs applicable to revenue	162,358	138,664	484,573	414,453
SG&A	151,251	134,457	445,714	395,385
Asset impairment	0	0	1,000	52
Debt issuance costs			2,702
Litigation settlement	0	0	7,000	0
Other expense, net	568	563	744	1,217
EBITDA	31,912	27,532	111,756	107,974
Depreciation and amortization	15,352	13,217	44,404	38,237
Interest expense, net	14,851	9,728	40,965	29,377
Earnings before income taxes	1,709	4,587	26,387	40,360
Operating Segments \| Owned & Host
Segment Reporting Information [Line Items]
Segment product revenues	211,035	184,292	649,526	560,794
Segment services and plans revenues	48,119	40,331	146,415	122,455
Total net revenue	259,154	224,623	795,941	683,249
Cost of products	63,159	54,157	190,604	163,059
Cost of services and plans	39,395	32,816	113,902	94,831
Total costs applicable to revenue	102,554	86,973	304,506	257,890
SG&A	103,851	91,000	304,168	260,537
Asset impairment			0	0
Debt issuance costs			0
Litigation settlement			0
Other expense, net	0	0	0	0
EBITDA	52,749	46,650	187,267	164,822
Operating Segments \| Legacy
Segment Reporting Information [Line Items]
Segment product revenues	24,503	25,134	78,828	79,099
Segment services and plans revenues	12,864	12,220	37,840	37,749
Total net revenue	37,367	37,354	116,668	116,848
Cost of products	11,427	11,749	37,138	37,118
Cost of services and plans	4,579	2,933	11,909	8,723
Total costs applicable to revenue	16,006	14,682	49,047	45,841
SG&A	12,904	12,984	39,087	39,783
Asset impairment			0	0
Debt issuance costs			0
Litigation settlement			0
Other expense, net	0	0	0	0
EBITDA	8,457	9,688	28,534	31,224
Operating Segments \| Corporate/Other
Segment Reporting Information [Line Items]
Segment product revenues	46,421	37,977	134,371	113,639
Segment services and plans revenues	3,110	4,408	11,274	13,483
Total net revenue	49,531	42,385	145,645	127,122
Cost of products	40,699	33,240	120,116	98,309
Cost of services and plans	2,632	3,819	9,663	11,479
Total costs applicable to revenue	43,331	37,059	129,779	109,788
SG&A	34,496	30,473	102,459	95,065
Asset impairment			1,000	52
Debt issuance costs			2,702
Litigation settlement			7,000
Other expense, net	568	563	744	1,217
EBITDA	(28,864)	(25,710)	(98,039)	(79,000)
Reconciling Items
Segment Reporting Information [Line Items]
Segment product revenues	1,689	(765)	4,467	3,255
Segment services and plans revenues	(1,652)	(2,381)	(9,232)	(11,393)
Total net revenue	37	(3,146)	(4,765)	(8,138)
Cost of products	467	(50)	1,241	934
Cost of services and plans	0	0	0
Total costs applicable to revenue	467	(50)	1,241	934
SG&A	0	0	0	0
Asset impairment			0	0
Debt issuance costs			0
Litigation settlement			0
Other expense, net	0	0	0	0
EBITDA	$ (430)	$ (3,096)	$ (6,006)	$ (9,072)

Earnings Per Share - Reconciliation of Basic and Diluted EPS Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Earnings Per Share [Abstract]
Net income	$ 1,546	$ 3,026	$ 17,120	$ 24,467
Weighted average shares outstanding for basic EPS	56,414	56,211	56,363	56,176
Effect of dilutive securities:
Stock options	2,045	959	1,918	638
Weighted average shares outstanding for diluted EPS	58,459	57,170	58,281	56,814
Basic EPS (in usd per share)	$ 0.03	$ 0.05	$ 0.30	$ 0.44
Diluted EPS (in usd per share)	$ 0.03	$ 0.05	$ 0.29	$ 0.43
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options outstanding excluded from EPS	0	0	339	92

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Sep. 30, 2017	Oct. 01, 2016
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Beginning balance			$ 401,887
Ending balance	$ 254,588		254,588
Cash Flow Hedges
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Beginning balance	(14,605)	$ (18,909)	(14,556)	$ (11,284)
Other comprehensive loss before reclassification	(228)	(401)	(2,424)	(8,026)
Amount reclassified from AOCL	1,610	0	3,757	0
Net current period other comprehensive income (loss), net of tax	1,382	(401)	1,333	(8,026)
Ending balance	$ (13,223)	$ (19,310)	$ (13,223)	$ (19,310)

Subsequent Events - Narrative (Details)						1 Months Ended	9 Months Ended
Subsequent Events - Narrative (Details)	Nov. 20, 2017 USD ($)	Nov. 08, 2017 USD ($)	Oct. 26, 2017 USD ($) shares	Oct. 25, 2017 USD ($) $ / shares shares	Oct. 24, 2017 shares	Nov. 20, 2017 USD ($)	Sep. 30, 2017 USD ($) shares	Oct. 01, 2016 USD ($)	Oct. 31, 2017 USD ($)	Oct. 30, 2017 USD ($) $ / shares shares	Oct. 23, 2017 shares	Dec. 31, 2016 shares
Subsequent Event [Line Items]
Stock options granted (shares) \| shares							1,264,953
Common stock, shares authorized \| shares							200,000,000					200,000,000
Debt issuance fees \| $							$ 2,702,000	$ 0
Subsequent Event
Subsequent Event [Line Items]
Stock split conversion ratio					1.96627
Common stock, shares authorized \| shares					200,000,000					200,000,000
Preferred stock, shares authorized \| shares										50,000,000
Preferred stock, par value (in usd per share) \| $ / shares										$ 0.01
Debt issuance fees \| $						$ 700,000
Subsequent Event \| 1-800 Contacts Matter
Subsequent Event [Line Items]
Percent of settlement award deposited in escrow account (percent)		50.00%
Amount of settlement deposited in escrow account \| $		$ 3,500,000
Subsequent Event \| KKR
Subsequent Event [Line Items]
Debt issuance fees \| $						300,000
Subsequent Event \| Line of Credit \| Revolving Credit Facility
Subsequent Event [Line Items]
Line of credit maximum borrowing capacity \| $									$ 100,000,000	$ 75,000,000
Subsequent Event \| Term Loan \| First Lien Term Loans
Subsequent Event [Line Items]
Debt instrument, face amount \| $	$ 570,000,000					$ 570,000,000
Subsequent Event \| Term Loan \| First Lien Term Loans \| LIBOR
Subsequent Event [Line Items]
Variable interest rate (percent)	2.75%
Decrease in applicable margin from previous interest rate margin (percent)	0.25%
Subsequent Event \| Term Loan \| First Lien Term Loans \| LIBOR \| Maximum
Subsequent Event [Line Items]
Variable interest rate (percent)	2.75%
Subsequent Event \| Term Loan \| First Lien Term Loans \| LIBOR \| Minimum
Subsequent Event [Line Items]
Variable interest rate (percent)	2.50%
Subsequent Event \| Term Loan \| First Lien Term Loans \| Base Rate
Subsequent Event [Line Items]
Variable interest rate (percent)	1.75%
Decrease in applicable margin from previous interest rate margin (percent)	0.25%
Subsequent Event \| Term Loan \| First Lien Term Loans \| Base Rate \| Maximum
Subsequent Event [Line Items]
Variable interest rate (percent)	1.75%
Subsequent Event \| Term Loan \| First Lien Term Loans \| Base Rate \| Minimum
Subsequent Event [Line Items]
Variable interest rate (percent)	1.50%
Subsequent Event \| 2017 Omnibus Incentive Plan
Subsequent Event [Line Items]
Number of shares of common stock authorized to be issued under plan (shares) \| shares											4,000,000
Stock options granted (shares) \| shares				92,443
Options granted exercise price (in usd per share) \| $ / shares				$ 22
Unrecognized stock-based compensation expense \| $				$ 800,000
Subsequent Event \| 2017 Omnibus Incentive Plan \| Stock Options
Subsequent Event [Line Items]
Award vesting period (in years)				3 years
Period of expense recognition				3 years
Subsequent Event \| 2017 Omnibus Incentive Plan \| Restricted Stock Units
Subsequent Event [Line Items]
Restricted stock units granted (shares) \| shares			175,273
Subsequent Event \| 2017 Omnibus Incentive Plan \| Restricted Stock Units \| Vesting in Two Equal Installments
Subsequent Event [Line Items]
Award vesting period (in years)			2 years
Period of expense recognition			2 years
Unvested restricted units (shares) \| shares			58,909
Unrecognized stock-based compensation expense \| $			$ 1,300,000
Subsequent Event \| 2017 Omnibus Incentive Plan \| Restricted Stock Units \| Vesting in Three Equal Installments
Subsequent Event [Line Items]
Award vesting period (in years)			3 years
Period of expense recognition			3 years
Unvested restricted units (shares) \| shares			116,364
Unrecognized stock-based compensation expense \| $			$ 2,600,000